Race to stop economic confidence falling victim to coronavirus

Central bankers need to coordinate their efforts to stop wavering economic sentiment from declining further

The Bank of England governor, Mark Carney, has spent the last week in talks with the chancellor and officials at No 10 knowing that there could be dire economic consequences if the coronavirus provokes a collapse in public confidence. Other central banks have the same concern, but mounting a coordinated response will be a challenge as shockwaves reverberate around the world.

Confidence is a watchword in any crisis and especially a health crisis, according to the Centre for Economic Policy Research.

With interest rates at 0.75%, there is little room for the Bank of England to help the economy by cutting rates

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